DJINN Guild: GameFi 2.0 Explained
🔥 GameFi is a relatively new concept formed by the words ‘game’ and ‘finance’. It refers to games that contain blockchain technology, non-fungible tokens (NFTs) where many players can enjoy the gaming aspects and be rewarded with tokens for their effort.
💎 Due to the nature of this intriguing play-to-earn (P2E) model, the GameFi world has attracted millions of users in the past couple of years. Axie Infinity was one of the primary examples for the successful first era of GameFi.
In this game, players form a team consists of creatures called Axie to battle using turn-based system. They can also raise and upgrade Axies, breed and sell them to earn gaming tokens. These tokens can be converted into Bitcoin, Ethereum, fiat currency or stablecoins. This works as a general model for all other GameFi projects. The convenience of being able to enjoy the wonderful world of games while can still make use of the time spent to earn money has undoubtedly drawn enormous attention from NFT and cryptocurrencies enthusiasts.
However, the glory era of Axie Infinity quickly dissolved into bubbles as the project experienced rapid decrease in revenue at the beginning of this year. The game that made millions of dollars a day now struggles with approximately 50,000 UDS/day.
One of the primary reasons for this game’s downfall is the inability to manage in-game’s market. Rewarded token inflation and the unbalance in supply and demand caused this game to gradually lose their players. Another element that is also the general reason for why GameFi projects have gotten less and less attractive is the abandonment of gaming aspects and priority on the financial methods. Most GameFi projects focus on the method for earning tokens instead of putting efforts on their gameplay, designs, and storytelling. They slowly became another token mining tools and are easily given up by players and investors once they were unable to produce more valuable tokens.
The next era of GameFi, known as GameFi 2.0, aims to improve the weaknesses from the last era and create a more fun and stable community that actually enjoy both gaming and financial aspects of the games.
Many of the upcoming projects promised a revolution in the GameFi world by assembling professional managers and game-making talents in their development team. The in-game economy is carefully planned and well organized to create a stable and enjoyable environment. These games also prioritize free-to-play gaming options by locking no gameplay power or upgrades behind a pay wall, giving players free choices to invest whenever they feel like it.
💎 To name a few, Triple-A RPG action game Big Time has had their successful fundraising rounds with approximately 21 million USD. The game offers a variety of playable characters with unique fighting styles and diverse battle system including class and weapons. Big Time team also shared their wish to focus more on cosmetic NFT (also known as skin) and make the game easier to access for everyone, believing that these elements are the key to long-term development.
💎 While games are meant for relaxing, another part of the community would also love to be challenged. FPS (First Person Shooter) Undead Blocks is born for this purpose for its thrilling gameplay and atmosphere. The world’s first kill-to-earn crypto game is set in a world where there are only 2 things to learn: zombies and survival. They encourage cooperative and competitive spirit of players through co-op mode and tournaments, keeping the constant hype in the community.
💎 There are also projects with important social mission like Nyan Heroes who aimed to save millions of cats from euthanasia. Pet-lovers can enjoy this game knowing that their contribution to the game helps benefit real-world animals.
GameFi still has not run out of ideas. They promised a comeback with a rumbling wave after the many failures to prove their own advantages as the best of both entertainment and financial world.